posted April 4, 2024
The Edo Refinery has received a total of 15,000 barrels of crude oil in 2024 for production from the Oza Oil Field operated by Decklar Resources Inc. and its co-venturer, Millenium Oil & Gas Company Limited. This supply is crucial for the refinery’s operations and its ability to produce various petroleum products
According to the Chief Executive Officer of Decklar Resources, Sanmi Famuyide, he disclosed that they are actively involved in supplying crude oil to the Edo Refinery through the Trans Niger Pipeline for export from the Bonny Export Terminal.
Furthermore, he noted that the development of the refinery, facilitated by the Edo Refinery and Petrochemical Company Limited (ERPC), which was facilitated through a Memorandum of Understanding (MoU) between the Governor Godwin Obaseki-led State Government and AIPCC.
The understanding is significant for both local production and the broader energy sector, with the expansion plans from 6,000 to 21,000 barrels per day (bpd) capacity indicating a commitment to increasing domestic refining capacity, which aligns with goals for energy self-sufficiency and economic development.
Additionally, the production capabilities of the facility, including about 500,000 litres of diesel, 300,000 litres of naphtha, and 200,000 litres of low-pour fuel oil, which signposts its potential to contribute to the local market’s energy needs.
According to Famuyide, “We are very pleased to be announcing the significant milestone of the first crude oil exports from the Oza Oil Field through the TNP and Bonny Export Terminal. In addition, crude oil is still being trucked to the local refinery customer in Edo State.
“The restoration and continued operation and availability of the Trans Niger Pipeline connection between the Oza Oil Field and the Bonny Export Terminal and delivery and sales of crude oil to the local refinery has allowed Decklar and Millenium to deliver a steady stream of crude oil to market and to generate a continuing revenue stream.
“With continued revenues, the Company’s financial position will improve enabling progress with additional field development activities including re-entries and drilling plans. In addition, the approximately 8,000 barrels of crude oil Decklar and Millenium previously delivered to the Forcados export terminal is expected to have a vessel nomination in the next few weeks with export and sales coming thereafter.”
Noting that the crude oil produced from the field is sold to Shell Western Supply and Trading Limited (Shell), he said: “Crude oil production from the Oza Oil Field through the TNP to the Bonny Export Terminal is being sold to Shell Western Supply and Trading Limited (“Shell”). Crude oil held in storage at the Oza Oil Field and crude oil being produced into storage tanks from the Oza-1 and Oza-4 wells is being transported by truck a short distance in-field to the transfer pumping station at the Oza Oil Field for injection into the TNP.
“The first crude oil export cargo of 15,000 bbls to Shell was loaded on board a vessel with a bill of lading date of February 7, 2024, with sales proceeds expected in the last week of March. Decklar and Millenium are expecting another crude oil export nomination notice from Shell before the end of March 2024 for the export of another 15,000 barrels of crude oil currently held in the Bonny Export Terminal tanks.”